Free Arizona Real Estate Broker Examination Practice Questions

Sample Practice Questions

Try these 10 sample questions from the Arizona Real Estate Broker Examination practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1An Arizona broker represents a seller in a property transaction and prepares the deed without charging a separate drafting fee. Which constitutional condition makes that activity permissible?

   1. A. The broker is acting in the licensed capacity for a party to the transaction
   2. B. The broker is also commissioned as a notary
   3. C. The deed is recorded within ten business days
   4. D. The seller waives legal representation in writing

   Answer: A

   Explanation: Article XXVI applies when the licensee is "acting in such capacity as broker or salesman for the parties, or agent for one of the parties" to the property transaction. The broker's role in this sale therefore satisfies the constitutional condition.

   Reference: Arizona Constitution — Ariz. Const. art. XXVI, § 1

2. 2A buyer emails an offer to purchase a parcel. The seller reads it, takes no action, and does nothing suggesting agreement. What is the effect of the seller's silence?

   1. A. It accepts the offer when the email is opened.
   2. B. It accepts the offer when the buyer's proposed deadline passes.
   3. C. It accepts the offer if the buyer has already paid a deposit.
   4. D. It does not, by itself, manifest acceptance of the offer.

   Answer: D

   Explanation: The Arizona court explains that "Acceptance occurs when one manifests agreement to the terms of an offer in a way the offer requests or requires." With no response or conduct manifesting agreement, mere silence does not establish acceptance; opening the message, deadline passage, and the buyer's payment do not change that.

   Reference: Arizona Court of Appeals contract opinion — Arizona Court of Appeals opinion, acceptance discussion p. 9

3. 3An unmarried homeowner has owned and used a house as a principal residence for 24 months during the five years before sale. Which federal timing tests has the homeowner met for the main-home gain exclusion?

   1. A. The ownership test only; use must total five full years.
   2. B. The use test only; ownership must total five full years.
   3. C. Both the ownership and use tests for the ordinary exclusion.
   4. D. Neither test unless all 24 months were consecutive.

   Answer: C

   Explanation: IRS guidance says ownership for "at least 24 months (2 years) out of the last 5 years" meets the ownership test, and residential use for "at least 24 months (2 years) of the previous 5 years" meets the use test. The stated owner satisfies both timing tests; other exclusion conditions may still matter.

   Reference: IRS Topic No. 701 — IRS Topic 701, Eligibility Step 2

4. 4Arizona proposes to sell state trust land for less than its appraised true value. What does Article X require?

   1. A. The land may not be sold for less than the appraised value
   2. B. The sale is valid if approved by the county
   3. C. The discount is allowed for an all-cash purchaser
   4. D. The sale is allowed after a 30-day notice

   Answer: A

   Explanation: Article X, § 4 says no sale or other disposal "shall be made for a consideration less than the value so ascertained" by appraisal.

   Reference: Arizona Constitution — Ariz. Const. art. X, § 4

5. 5A deed conveying Arizona real property is presented for recording and is not exempt. What must be appended?

   1. A. A complete affidavit of legal value
   2. B. A broker audit declaration
   3. C. A certificate of assured water supply in every case
   4. D. A preliminary twenty-day notice

   Answer: A

   Explanation: A.R.S. § 11-1133(C) directs the recorder to refuse a deed if "a complete affidavit of legal value is not appended" unless an exemption is noted.

   Reference: 11-1133 - Affidavit of legal value — A.R.S. § 11-1133(C)

6. 6A commercial lease quotes an area measure that includes a tenant's usable space plus an allocated share of common lobbies and hallways. What is this area measure called?

   1. A. Rentable area.
   2. B. Usable area.
   3. C. Gross building area.
   4. D. Net assignable area.

   Answer: A

   Explanation: GSA defines rentable as "usable space plus common areas like restrooms, lobby, hallways, etc." The stipulated allocation is rentable area; usable area excludes that common-space add-on.

   Reference: GSA leases data glossary — GSA Leases glossary, Rentable Square Feet

7. 7An appraiser is valuing a conventional home in an active neighborhood and selects the sales-comparison approach. What evidence does that method analyze?

   1. A. The cost of replacing improvements, less depreciation and land value.
   2. B. Comparable closed sales, contracts, and listings for similar property.
   3. C. Net operating income converted to value by capitalization.
   4. D. The sum of land value and depreciated improvement cost.

   Answer: B

   Explanation: Fannie Mae defines the sales comparison approach as "an analysis of comparable sales, contract sales, and listings of properties that are the most comparable to the subject property." The other options describe cost- or income-based valuation paths rather than comparable market sales.

   Reference: Fannie Mae Selling Guide B4-1.3-07 — Sales Comparison Approach, Overview, paragraph 1

8. 8In an Arizona deed of trust securing a buyer's loan, which party conveys trust property as security for the benefit of the lender-beneficiary?

   1. A. The trustor conveys the security property to the trustee.
   2. B. The trustee conveys the security property to the trustor.
   3. C. The beneficiary conveys the security property to the trustee.
   4. D. The trustor conveys the security property to the beneficiary.

   Answer: A

   Explanation: Arizona defines the "Trustor" as "the person conveying trust property by a trust deed as security" and the trustee as the person "to whom trust property is conveyed by trust deed." The lender is the beneficiary of the security; the buyer-borrower is ordinarily the trustor.

   Reference: A.R.S. §33-801 — A.R.S. §33-801(11)

9. 9A borrower has $1,800 in monthly housing payments and $600 in other monthly debt. Gross monthly income is $6,000 and take-home income is $4,800. What is the debt-to-income ratio?

   1. A. 30%.
   2. B. 40%.
   3. C. 50%.
   4. D. 60%.

   Answer: B

   Explanation: CFPB says, "To calculate your DTI, you add up all your monthly debt payments and divide them by your gross monthly income." Thus ($1,800+$600)/$6,000=40%. The alternatives omit nonhousing debt, use net income, or compute the leftover-income share.

   Reference: CFPB debt-to-income guidance — CFPB, What is a debt-to-income ratio?

10. 10In ADRE's current audit process, which numbered phase is a brokerage spot check?

    1. A. Phase 1
    2. B. Phase 2
    3. C. Phase 3
    4. D. Phase 4

    Answer: A

    Explanation: ADRE explains: "A spot check is phase 1 of an audit." It reviews the brokerage's main compliance components.

    Reference: Auditing & Investigations | Department of Real Estate — Frequently Asked Questions — What is a Spot Check?